Value stocks are facing tough time in the future

The cautious managed fund sector has enjoyed three months of improving performance after a difficult year, and managers are using the technology correction as a buying opportunity. Since the recent correction value stocks have enjoyed a resurgence. This has allowed cautious managed funds to reap gains on value positions bolstered during the height of the technology, media and telecoms story. According to Standard & Poor's, over the three months up to 7 June the average cautious managed fund returned 1.2% on a bid to bid basis, compared to negative one year performance of 2.0% on an offer ...